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Abu Dhabi real estate market remained stable in Q3, despite slowdown in government spending and weaker sentiment, according to JLL’s Q3 2015 Abu Dhabi Real Estate Overview report.
“The general trend for Q3 and indeed the first three quarters of 2015 has been stability, with value performance of most sectors remaining flat, and a slight increase in hospitality performance,” said David Dudley, International Director and Head of Abu Dhabi Office at JLL MENA.
“While the market has remained relatively stable there are increased signs of caution – with a slow-down in government domestic spending and a reduction in transaction volumes and investor sentiment,” he added.
Following a two year bull-run where residential price growth at 25% per annum outstripped GDP growth of 3% to 5% per annum, a period of stabilization is not a bad thing – allowing market dynamics to catch up with sentiment, he said.
The UAE government announced that it plans to cut spending by 4.2% this year, following the decline in oil prices, the first such cut in spending for 13 years and all indications are that this trend will continue.
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